Financial Analysis Project : Starbucks

Starbucks is a “premier roaster, marketer and retailer of specialty coffee” (Marketline 2012). This company is globally recognized because of their vast amount of stores, consisting of more than 17,000 retail stores in over 55 countries. Most retail stores are in highly populated areas, like “downtown and suburban centers, office buildings, university campuses and in select rural and off-highway locations” (Marketline 2012).

Starbucks started out as a single coffee shop in Seattle with a mission to serve fresh-roasted coffee and teas. Starbucks then expanded into major cities in America as well around the globe (About Us). Today, Starbucks is the largest coffeehouse in America with over 15,000 stores in operation (Statista). Starbucks two main priorities are serving premium drinks, and creating a positive environment for their employees, who Starbucks refers to as “partners.” Starbucks has seen success for a multitude of factors such as a large demographic of customers, which includes adults, teens, college students, middle class, and upper class consumers.

Starbucks is one of the most recognizable coffee retail chains in the world. Their brand focuses on high quality coffee using specialized roasting of beans from many countries around the world.

It’s all about the coffee for Starbucks. Starbuck’s core competence is in its ability to effectively leverage its coffee product to entice customers to be repeat customers. There are several ways that they have achieved this successfully.

Founded in 1985, Starbucks is one of the largest coffeehouse companies in the world, with over 16,000 stores in 50 countries (Starbucks Annual Report, 2009, p. 1). Starbucks sells high-quality

McDonald’s, in addition to several other fast food vendors like Burger King, Dunkin’ Donuts, Panera Bread and independent coffee houses remain Starbuck’s toughest competition (Adamy). McDonald’s began introducing its espresso beverage products in 2001, and offers its product at a price between two and three dollars to compete with Starbucks between three and four dollars a cup coffee (Adamy). Similarly, Dunkin’ Donuts has recently implemented a plan to expand nationally (Adamy). On average, Dunkin’ Donuts coffee products cost approximately 20 percent less than Starbucks’ (Ball and Leung). In response, Starbucks has announced recent

Starbucks is rated as the number one World’s leading coffee distributor. Customers satisfactions are always be in the center of their business and the company works consistently to maintain it as customer look forward to a unique experience when visiting one of Starbuck stores. With over 12,000 stores worldwide, Starbucks has always aimed at achieving and maintaining competition in the industry.  Starbucks success reside in many factors :  the company is admire and respected worldwide,employees are recognized and respected for what they contribute to the success of the company. Open communication

Starbucks is acclaimed for its superior value proposition in the early 1990’s by creating an experience around the consumption of coffee, a ‘third place’. The brand is positioned to offer the highest quality coffee, close customer intimacy, and warm atmosphere or ambience.

Starbuck being one of the biggest coffee house in Canada but in the world as well, focus on achieving competitive advantage by product differentiation as the delivery of quality products or services that are perceived to be unique and valued by consumers ("Sustained Competitive Advantage of Starbucks", 2016) Starbucks is well-known for tailoring their drinks to a broad customers’ needs by preparing orders that meet customers’ wishes, no matter how crazy they are. Starbucks is also well known for quality products, with stringent guidelines outlining how they pick and harvest their coffee ("Coffee Quality", 2016), to how their coffees are to be prepared, to as detailed as espresso must be served within twenty-three seconds of brewing. (Groth

Starbucks is the premier roaster, marketer and retailer of specialty coffee in the world. It is the No. 1 branded coffee house chain in the world, with 19,797 company operated and non-company operated stores in 62 countries (Starbucks Corporation, 2013). The CEO Howard Shultz leads them, and Starbuck’s employs 182,000 persons. Starbuck competes globally with other coffee shops, and fast food chains that offer coffee on the menu (Shah, Hawk, & A, 2011).

Starbucks is and will continue to be one of the largest distributers of a cup of coffee today and into the future.  The Starbucks mission to “inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” directly correlates with the experience a customer has in each store. They have many ways to differentiate in comparison to competitors because they provide an experience while shopping for a coffee allowing them to charge a premium price.

Starbucks customers are diverse, well educated, young business people looking for a quick and easy way to grab coffee on their way to work. Starbucks values a strong relationship with their customers so they are

Starbucks control the supply chain so that they can make sure the coffee is the highest quality. And the starbucks locations are always in downtown area or high-population area which brings customers more convenience. The decoration style is trying to make customers feel as comfortable as they can. Although starbucks is not unique enough as other private coffee shop, starbucks is the highest coverage coffee shop with high quality coffee and comfortable areas. It is a coffee shop brand that people can easily find and walk in.

To ensure brand richness, Starbucks bring the best ingredients and quality control, they also assure that all the employees are constantly involved and be aware of its mission and vision.

Starbucks is one of the leading coffee retailers in the world; according to their company profile they are operating nearly 18,000 retail stores in 60 countries. They serve millions of customers daily; our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. (STARBUCKS COFFEE COMPANY, 2012) Starbucks has become much more than just a place to get coffee, it has become a brand.